Which of the Following Is Likely to Result in a Lower

question 202

Multiple Choice

Which of the following is likely to result in a lower equilibrium price?

• A)An increase in both demand and supply.
• B)A decrease in both demand and supply.
• C)An increase in demand and a decrease in supply.
• D)A decrease in demand and an increase in supply.
• E)None of the above.

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Definitions:

General Price Level

An indicator of the average prices of goods and services throughout an economy over a period of time, often used to measure inflation.

Hourly Pay

Compensation or wage calculated based on the number of hours worked, often used for part-time, temporary, or freelance work.

U.S. Dollar Terms

Pricing or valuation of goods, services, or assets denominated in U.S. dollars, irrespective of the local currency.

Real Hourly Compensation

The wages received by an employee adjusted for inflation, reflecting the true purchasing power over time.